New outlet for Tete coal

The Balaka-Lilongwe railway in Malawi has been rehabilitated, enabling coal imports to begin from Mozambique’s Tete Province into the landlocked Southern African country.

Tete contains huge reserves of both thermal and coking coal but international investors have sold their mine assets as environmental concerns have hit global demand.

However, Indian investors such as Jindal and JSW Steel have bought up mines in the country, mainly to ship coal to India but are also keen to identify any markets closer to the mines themselves.

Apart from re-laying some sections of the track, several bridges on the ageing line had to be rebuilt. In a statement, the government of Malawi said that it was “working hard to ensure that rail connectivity is put back in place in all areas where there are existing rail structure up to Zambia as it looks to take the rail to the Northern region” and also Democratic Republic of Congo.

Operator Nacala Logistics plans to complete the rehabilitation of the railway line between Lilongwe and Zambia by the end of 2024.

The revamped railway connects with the Nacala railway, which runs from the Indian Ocean port of Nacala westwards through Malawi and back into northwest Mozambique to serve mines in the Moatize region of Tete Province.

The Balaka-Lilongwe line was therefore vital in allowing coal to be transported to Malawi’s capital. The country currently has limited coal-fired generating capacity at present but plans for much bigger plants have been drawn up.